Spitfire Resources Limited (ASX: SPI)
ASX
RELEASE
3 August 2009
Spitfire Strengthens Cash Resources to Underpin Ongoing Manganese
Exploration
Share Placement Comprising 11.19M Share at 9cps to Raise
$1M
Spitfire Resources Limited (ASX: SPI
? ?Spitfire? or ?the Company?) advises that it has agreed to place a total of
11,194,444 shares at a price of 9 cents per share to new and existing
sophisticated investors, raising a total of A$1,007,500.
The funds raised will ensure that
Spitfire has adequate working capital to continue to pursue an aggressive
exploration and development program at its 80%-owned South Woodie
Woodie Manganese Project in Western Australia?s East Pilbara.
The placement is being made within
the 15% limit allowed under the ASX listing rules. All of the shares issued
under the placement are fully paid ordinary shares and will rank pari passu with
existing ordinary shares. Following completion of the placement, Spitfire will
have cash resources of approximately A$5.4 million.
Spitfire?s Executive Chairman and Managing Director, Mr
James Hamilton, said the additional funding would provide a strong platform for
the Company to maintain a substantial pace of exploration at South Woodie Woodie.
The Company recently reported
encouraging results from follow-up drilling at the Tally-Ho Prospect, where it
has defined a coherent, near-surface manganese deposit
over an area of approximately 230 metres by 200 metres. The Company is planning to complete an initial JORC
resource over this area by September 2009.
Additional exploration activity
planned for this year includes:
- Diamond
drilling to more accurately determine the geotechnical parameters and seam
geometry of the Tally-Ho Deposit;
- Additional metallurgical
test work;
- Additional
RC drilling to extend the Tally-Ho Deposit to the north, where the mineralisation remains open; and
- Preparations
for initial exploration to test a new priority target area for a primary Woodie-Woodie-style deposit
located 1km to the north west of Tally-Ho.
ENDS
Released
by:
On behalf of:
Mr. Nicholas Read
Mr. James Hamilton
Read
Corporate
Executive Chairman
Telephone: (61-8) 9388
1474
Spitfire Resources Limited
www.readcorporate.com.au
Telephone: (61-8) 6382 3700
www.spitfireresources.com
Competent Person?s Statement
The information in this release
relating to exploration is based on information compiled by Mr. N. Cull who is
a Member of the Australian Institute of Geoscientists. Mr. Cull is Exploration
Manager for Spitfire Resources Ltd, and consents to the inclusion in this type
of report of the information as presented. He has sufficient experience
relevant to the style of mineralisation and to the
type of activity described to qualify as a competent person as defined in the
2004 Edition of the ?Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves.?
About Spitfire Resources
Spitfire Resources Limited (ASX
Code: SPI) is an emerging Australian resource development company focused on
the carbon steel materials sector. Spitfire’s flagship asset is the
80%-owned South Woodie Woodie
Manganese Project, which is located down-strike to the south from the 1Mtpa Woodie Woodie Manganese Mine in
the East Pilbara region of Western Australia.
Spitfire’s initial exploration
success at South Woodie Woodie
has been within the Southern Target Area, where it has defined a near-surface
manganese deposit at the Tally-Ho Prospect, in an area which has had virtually
no historical exploration coverage.
The Company is focusing on progressing this exciting discovery with a view to
delivering its first JORC compliant resource estimate during the second half of
2009. In addition, Spitfire has identified a strong pipeline of exploration
targets within its tenement holdings, including a priority target located
immediately adjacent to Tally-Ho where recent geological mapping has
highlighted the potential to discover a primary, Woodie
Woodie-style deposit.
Spitfire?s principal focus will remain the exploration and evaluation of manganese
deposits in the East Pilbara, although it has also acquired a portfolio of
advanced thermal coal projects in Tasmania offering the potential for future
diversification in the energy sector and a 70% interest in a group of seven Exploration
Licence Applications surrounding the Lindeman?s Bore
Project in the Northern Territory. This tenement package, covering a total area
of more than 9,000km2, surrounds the tenements where Proto Resources
& Investments Ltd has announced a significant new mineral discovery at the
LBD-1 target.